The purchase covers approx. 175 acres and includes 21 wells with 14 additional wells to be brought online within the next 24 months
NEP Midstream & Royalties acquires Permian Basin mineral and royalty interests in Reagan County, Texas. (Credit: drpepperscott230 from Pixabay)
NEP Midstream and Royalties has acquired various Mineral and Royalty Interests in Reagan County, Texas with an effective date of December 01, 2019
The purchase covers approx. 175 acres and includes 21 wells with 14 additional wells to be brought online within the next 24 months. The current volume produced within this acreage is 4,350 barrels of oil per day and 6,748 MCF per day of natural gas. The 14 additional wells are expected to add significant revenue with no additional capital expenditures.
Reagan County, Texas has a long history of producing oil and natural gas. Several of the acres included in the purchase have been producing oil and natural gas since 1949, NEP Midstream and Royalties is expecting to generate positive cash flow for another fifty years within this acreage.
The properties are operated by Plains All American, Russell Operating and Sable Permian Resources.
NEP Midstream and Royalties invests primarily in pipeline and energy-related logistical infrastructure assets with an emphasis on those that transport, gather, process and store crude oil, natural gas and natural gas liquids (NGLs).
Source: Company Press Release